Schools, varsities face probe over funds misuse

By MWANIKI MUNUHE

Special audit of all government schools, colleges and universities accounts could be launched anytime from now, The Standard on Saturday has established.

This follows the Auditor General’s report that revealed massive loss of money, much of it under mysterious circumstances in public schools and institutions of learning. We have also established that the Parliamentary Committee on Education has demanded a forensic audit on accounts of each public school, universities and colleges.

Committee chairperson Sabina Wanjiru Chege confirmed this saying her team raised the red flag after indications pointed to a possible network of theft between Ministry of Education officials and heads of public schools.

“We are also asking for a thorough audit of the financial accounts in every single school and universities. What we see is a possible collaboration between ministry officials and heads of schools. Otherwise, how do you explain a situation where when money is lost, heads of schools are not charged? We have learnt they are normally transferred to other schools, sometimes even better schools. We are taking this matter extremely seriously,” she said.

Ghost projects

The Auditor General’s report revealed massive loss of money through what appears to be ghost projects, unjustified over expenditure and impunity in allocation of tenders. In some instances, the schools management claimed documents that could justify expenditure of millions of shillings had been lost in a fire incident, yet no prove was provided to indicate that any such incident had taken place.

For instance, the national audit office discovered that out of the Sh25 million Friends School Kamusinga received in two tranches of Sh12 million during the 2010/11 financial year for rehabilitation works, the institution had spent Sh14,224,450.

However, no evidence such as payment vouchers, works certificates and invoices were made available.

The school’s management however said the documents were destroyed by fire at the Bungoma District Schools Audit Office. There was, however, no evidence to support their claims.  As a result, propriety of the expenditure of Sh14,224,450 could not be confirmed.

In other instances, contract sums were increased without justification while in other schools, contractors were paid the entire sums without completing the works.

Physical verification

According to the Auditor General’s report, Malindi Boys High School received Sh25 million during 2010/11 financial year for the rehabilitation of various buildings. The school identified 10 projects estimated to cost Sh27,883,596.25 and awarded labour contracts to two contractors and supply of materials to four suppliers.

However, as of June 30, 2012, the school had paid Sh25,876,035.40 to the contractors and suppliers, yet physical verification in September 2012 revealed the projects were less than 50 per cent complete, while 93 per cent of the estimated cost had been paid.

Similarly, Nairobi School received Sh25 million during the 2010/11 financial year for rehabilitation of facilities. The school’s management tendered for construction of a toilet block and associated electrical and civil works, and awarded the contract to the fourth lowest bidder at a cost of Sh531,190 instead of the lowest who had quoted Sh359,773.

No explanation was given as to why the contract was not awarded to the lowest  bidder.

Insufficient funds

In some instances, some schools even awarded contracts whose funding had not been factored in the budget while others used budgetary allocations for the wrong projects.

The management of Friends School Masaba Secondary School in Trans Nzoia instructed a contractor to begin the construction of one laboratory block at a cost of Sh3,187,150.90 but without a budgetary provision for the works.

As at June 30, 2012 the contractor had completed the certified works valued at Sh1,823,270 and invoiced the school for the works. However, due to lack of funds, the school has been unable to pay the contractor.

The awarding of the contract, according to the Auditor General’s report was contrary to Section 26(6) of the Public Procurement and Disposal Act 2005. The Act states that a procuring entity shall not commence procurement procedures until it is satisfied that sufficient funds have been set aside to meet obligations of the resulting contracts.

On the other hand, Kenya High School received Sh48 million under the Economic Stimulus Programme for the construction of three classrooms, expansion of a dormitory, renovation of the kitchen and improving the dining hall. Interestingly however, the audit of expenditure documents and physical verification carried out revealed that the school utilised the whole amount on construction of staff quarters, contrary to the ministry’s approved projects.

The school management has not why the funds were diverted from their original purpose.